Altria Stock Valuation

MO -  USA Stock  

USD 54.50  0.61  1.13%

What is the current enterprise value of Altria Group? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Altria, is its stock price multiplied by the total number of shares outstanding, calculating Altria's enterprise value requires a different approach. It uses Altria's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Altria Enterprise Value is quite stable at the moment as compared to the past year. The company's current Enterprise Value is estimated at 122.07 Billion. Tangible Asset Value is expected to rise to about 25.4 B this year, although the value of Free Cash Flow will most likely fall to about 7.6 B.
Altria Group shows a prevailing Real Value of $51.95 per share. The current price of the firm is $54.5. At this time, the firm appears to be fairly valued. Our model approximates the value of Altria Group from analyzing the firm fundamentals such as Current Valuation of 123.18 B, profit margin of 14.30 %, and Return On Equity of 472.63 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Altria Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Altria's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today 54.50
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Please note that Altria's price fluctuation is very steady at this time. Calculation of the real value of Altria Group is based on 3 months time horizon. Increasing Altria's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Altria Group is useful when determining the fair value of the Altria stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Altria. Since Altria is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Altria Stock. However, Altria's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
51.95
Real Value
53.55
Upside
Estimating the potential upside or downside of Altria Group helps investors to forecast how Altria stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Altria more accurately as focusing exclusively on Altria's fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
4.604.624.63
Details
Hype
Prediction
LowEstimated ValueHigh
51.3952.9954.59
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.280.280.28
Details
10 Analysts
Consensus
LowTarget PriceHigh
46.0050.8856.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Altria's intrinsic value based on its ongoing forecasts of Altria's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Altria's closest peers. When choosing an evaluation method for Altria Group, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Altria Investments

15.79 Billion

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Altria Valuation Drivers Correlation

Many accounts on the financial statements of Altria Group are highly interrelated and sometimes correlated. Consequently, when conducting Altria's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Altria
Click cells to compare fundamentals

Altria Valuation Trend

Knowing Altria's actual value is paramount for traders to make sound investment determinations. Altria's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Altria's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Altria's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Altria Market Cap

Altria Group is regarded second in market capitalization category among related companies. Market capitalization of Tobacco industry is now estimated at about 251.32 Billion. Altria totals roughly 93.85 Billion in market capitalization claiming about 37% of equities listed under Tobacco industry.
Capitalization  Total debt  Workforce  Valuation  Revenue

Altria Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Altria's current stock value. Our valuation model uses many indicators to compare Altria value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Altria competition to find correlations between indicators driving Altria's intrinsic value. More Info.
Altria Group is regarded second in last dividend paid category among related companies. It is considered to be number one stock in five year return category among related companies reporting about  1.76  of Five Year Return per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Altria by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Altria's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Altria's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Altria's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Altria and how it compares across the competition.

About Altria Valuation

The equity valuation mechanism determines the current worth of Altria Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Altria Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Altria Group based exclusively on its fundamental and basic technical indicators. By analyzing Altria's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Altria's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Altria. We calculate exposure to Altria's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Altria's related companies.
Last ReportedProjected for 2022
Gross Profit14 B14 B
Profit Margin 0.1  0.14 
Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. Altria Group, Inc. was founded in 1822 and is headquartered in Richmond, Virginia. Altria operates under Tobacco classification in the United States and is traded on New York Stock Exchange. It employs 6000 people.

Altria Quarterly Enterprise Value

118.45 Billion

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Altria's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Altria's value is low or high relative to the company's performance and growth projections. Determining the market value of Altria can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Altria represents a small ownership stake in the entity. As a stockholder of Altria, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Altria Dividends Analysis For Valuation

Please note that Altria has scaled down on payment of dividends at this time. Accumulated Retained Earnings Deficit is expected to rise to about 34.6 B this year. Earning Before Interest and Taxes EBIT is expected to rise to about 6.4 B this year
There are various types of dividends Altria can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Altria shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Altria Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Altria pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Altria by the value of the dividends paid out.

Altria Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Altria does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.49
Earnings Quarterly Growth37.60%
Revenue Growth-1.30%
Payout Ratio215.76%
Enterprise Value To Ebitda9.96
Earnings Growth40.50%
Enterprise Value To Revenue5.85

Altria Current Valuation Indicators

Valuation refers to the process of determining the present value of Altria Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Altria we look at many different elements of the entity such as Altria's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Altria's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Altria's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Altria, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Altria's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Altria's worth.
Additionally, see Stocks Correlation. Note that the Altria Group information on this page should be used as a complementary analysis to other Altria's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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When running Altria Group price analysis, check to measure Altria's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Altria is operating at the current time. Most of Altria's value examination focuses on studying past and present price action to predict the probability of Altria's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Altria's price. Additionally, you may evaluate how the addition of Altria to your portfolios can decrease your overall portfolio volatility.
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Is Altria's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Altria. If investors know Altria will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Altria listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Altria Group is measured differently than its book value, which is the value of Altria that is recorded on the company's balance sheet. Investors also form their own opinion of Altria's value that differs from its market value or its book value, called intrinsic value, which is Altria's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Altria's market value can be influenced by many factors that don't directly affect Altria's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Altria's value and its price as these two are different measures arrived at by different means. Investors typically determine Altria value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altria's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.